Nothing on 14th. 50 C100s after board meets

 

I notice everyone is talking about this RFP as a maddog replacement. At the roadshows they stated they needed 50 additional narrow body aircraft in addition to the current aircraft on order to meet the current fleet plan. They then added that if the right deal presented itself they would look at a additional 30 airframes to retire the oldest 30 Maddogs. The remaining mad dogs would would start leaving after 2020.

 

C series but some 737s to cancel out the E190s we were going to get from Boeing

 

737's to ease the pain to BA for the E190's, plus some A320's.

Unless we get the C series for 70% off, I don't see it.

 

Bombardier Near Deal to Sell Up to 125 Jetliners to Delta - WSJ

 

Welp, you got 24 hours to place your bet and we all now know nothing will happen on the 14th seems to be the safe vote. But you only get one vote.

Don't you want to be the one who said "told you so..."

 

It's just a WAG on my part. My guess on the C Series is from all the articles and speculations on the board. DAL needs to get out of the E190 contract with Boeing and I guess the only way to do that is to buy some other aircraft to appease them.

Just a line guy making a guess; C Series and 737s soon after the board meeting.

 

From the Wall Street Journal this morning. I'd say it's a good bet.

-----------------

Bombardier Near Deal to Sell Up to 125 Jetliners to Delta

Bombardier Near Deal to Sell Up to 125 Jetliners to Delta - WSJ

 

Bombardier Near Deal to Sell Up to 125 Jetliners to Delta
Sale would be a major victory for the struggling Canadian plane maker
By JON OSTROWER and JACQUIE MCNISH
Updated April 14, 2016 7:41 p.m. ET

Delta Air Lines Inc. is finalizing a huge order for a new Bombardier Inc. passenger jet, potentially breathing new life into the struggling Canadian plane maker’s challenge to the industry’s U.S. and European giants.

The No. 2 U.S. airline by passenger traffic plans to acquire as many as 125 CSeries jets, according to people familiar with the negotiations, in what would be a major victory for Bombardier.

The company has made a bold bet with its fuel-sipping jet, which has struggled to win orders as Boeing Co. and Airbus Group SE—which both fought for the Delta deal—have responded by offering big discounts to cement deals.

Delta’s plans would boost the credibility of Bombardier’s next-generation jetliner with big airlines, though analysts have indicated that buyers might demand significant price cuts and tough contract terms, putting the plane’s long-term profitability at risk.

While falling oil prices have fueled airline profits, Delta cautioned Thursday that average fares remain weak.

Bombardier is expected to reach a final agreement with Delta for 75 firm orders and options for 50 more by the end of April, when the carrier’s board meets to review the proposed purchase, said the people familiar with the negotiations. Delta is seeking to replace its aging fleet of single-aisle McDonnell Douglas MD-88 jets, as it moves to fly some regional routes with larger jets.

A Delta spokesman said no final decision has been made. A spokeswoman for Bombardier said it is in discussions with a number of airlines, and it will disclose deals as they are finalized.

The proposed deal would be the single largest so far this year by number of aircraft. If completed it would be worth between $5.3 billion and $6.2 billion, based on list prices, depending on the mix of aircraft involved. But deals of such magnitude would most likely include steep discounts.

Such a deal would make Delta by far the largest customer for the Canadian jet, giving it a big stake in the future of the CSeries program.

Delta has a history of upsetting established jet makers and providing new entrants a foothold in its fleet. Predecessor Northwest Airlines was the first U.S. airline to purchase Airbus A320 aircraft.

Ed Bastian, Delta’s incoming chief executive, said Thursday that the company’s 2016 capital-spending guidance remains unchanged. He said Delta is focusing on a five-year domestic fleet renewal because “the MD-88s do need to retire, and we have roughly 115 of them.” He said he hoped to have more information when the company holds an investor meeting in New York on May 16.

Bombardier’s foray into the 100- to 160-seat single-aisle jet market has left it with a heavy debt load after repeated delays and technical setbacks. The aircraft will enter service with Swiss International Air Lines, a unit of Deutsche Lufthansa AG, in June, roughly 2½ years later than first intended.

In February, Bombardier cut nearly 10% of its global workforce and reported a fourth-quarter loss of $677 million. Still, the company has said that it has enough cash over the next three years to ramp production of the CSeries.

The company has benefited from the $2.5 billion it has raised since October after agreeing to sell almost half its stake in the CSeries jet program to the government of Quebec, Bombardier’s home province, and selling a stake in its train-manufacturing business to a big Quebec pension fund.

—Ben Dummett and Susan Carey contributed to this article.

 

Still think we will end up with 737s. I'll kick my dog over that.